US – Canada Taxation

U.S. Citizen Residing in Canada:
The obligation to file income tax in the U.S. is based on citizenship (not residency) and a U.S. citizen is taxable in the U.S. on worldwide income. Resident alien status (green card holder) has the same obligation to file U.S. tax returns on worldwide income as a U.S. citizen. The U.S. Canada Tax Treaty provides some relief from double taxation.

Past Due US Returns:
U.S. citizens who have not filed annual U.S. income tax returns have the opportunity to come into compliance without penalty by filing three years of streamlined tax returns including Form 114 (FBAR) “Report of Foreign Bank and Financial Accounts” and Form 3520 “Annual Return to Report Transactions with Foreign Trusts and Receipt of Certain Foreign Gifts” (applicable to TFSA and RESP accounts).

Some U.S. citizens who have not complied with requirement to file annual U.S. income tax returns may wish to use streamlined filing to file five years of income tax returns, Form 114 and Form 3520 to be eligible to file without penalty Form 8854 “Initial and Annual Expatriation Statement” to relinquish U.S. citizenship.

Canadian Residents with ties to US:
We assist our clients to be compliance for the following and many more situations.

Canadian residents who:
Commute to work in the U.S.
Receive director fees from U.S. corporations
Partnership interests in U.S. partnerships
Own rental property in the U.S.
Own a vacation home in the U.S. which is rented part of the year.
Emigrating from Canada to work in the U.S. during the year.
Moving from the U.S. to Canada during the year.
Receive U.S. pensions(other than Social Security) from prior years working in the U.S. or who inherit pensions.
Athletes and entertainers performing services in the U.S.
Students in the U.S. earning income in the U.S. during student status.

Corporate Tax:
We file corporate tax returns for US based corporations whether resident or non-resident.

Charity Returns: Our firm also files charity returns for US based charities.

Dual Citizens: We assist our clients who have dual citizenship to satisfy both the tax regulatory authorities in Canada and United States.